Typical Measures of Return on Investment

Depending on the program, results can be measured in terms of time saved, productivity gained, market share increase or customer satisfaction.

Here are some ways to measure the payoff of some workforce management programs.

The measures are quite broad for some programs. For example, a reward systems project can pay off in a variety of measures such as improved productivity, enhanced sales and revenues, improved quality, cycle-time reduction or even direct cost savings.

In other programs, the influenced measures are quite narrow. For example, in labor management cooperation programs, the payoff typically comes in reduced grievances, fewer work stoppages and improved employee satisfaction. Orientation programs typically pay off in measures of early turnover (turnover in the first 90 days of employment), initial job performance and productivity.